Register for VAT

When to register for VAT

Compulsory Registration

It is mandatory for a business to register for VAT if the total value of taxable supplies made in any consecutive twelve month period exceeded or is likely to exceed R1 million. The business must complete a VAT 101 - Application for Registration form and submit it to the local SARS Branch within 21 days from date of exceeding R1 million.   

Voluntary Registration

A business may also choose to register voluntarily for VAT if the value of taxable supplies made or to be made is less than R1 million, but has exceeded R50 000 in the past period of 12 months.  

VAT Regulations:  Nature of Activities 

A person may apply to register as a vendor at the time that any goods or services are acquired directly in respect of the commencement of any of the following continuous and regular activities:

• Agriculture, Farming, Forestry and Fisheries
• Mining
• Ship and aircraft building
• Manufacture or assembly of plant, machinery, motor vehicles or locomotives
• Property development
• Infrastructure development
• Beneficiation

How does the VAT liability date work?

• In terms of voluntary VAT registrations submitted via eFiling, please note that the VAT liability date will be set in accordance with your date of registration. If you have charged VAT or are under a contractual obligation to charge VAT prior to applying for registration, you must visit a SARS with the necessary supporting documents such as signed contracts or invoices issued to prove the backdated liability request.
• For VAT registrations with taxable supplies exceeding R1 million (also referred to as compulsory registrations), the eFiling RAV01 VAT registration process will not allow backdating for more than six months from the date of registration. If the date entered exceeds six months, SARS will reset the date to the date of the application. Please visit a SARS if the backdating exceeds  six months with the necessary supporting documents such as financial statements, signed contracts or invoices issued.   

How to register for VAT

The VAT 101 application for registration must be submitted in person at the SARS branch nearest to the place where your business is situated or carried on. A registered tax practitioner may appear in person on behalf of the applicant. SARS will not accept any faxed or photocopied applications for registration. Posted applications will only be processed if applicants are geographically far from the SARS branch or due to any form of disability that prevents the applicant from appearing in person at the SARS branch, to present the application.

All supporting documents must be submitted, otherwise there may be a delay in finalizing the VAT registration

Source - SARS Website